Scoping out the competition

[somarco]

The Aetna HDHP product uses an embedded aggregate deductible, that is priced closely to their copay product with a similar deductible (say $5,000 for example). Everyone else here uses an aggregate deductible.

If you compare an Aetna $5000 HDHP with their $5000 Value copay plan, the prices are within a few dollars of the other.

The copay plan gives you copays (obviously) but has $7000 OOP on a large claim vs. $5000 with the HDHP.

Most agents fail to take into account the OOP on a large claim and just look at the deductible then automatically assume the copay is a better value.

Of course most agents lack the ability to sell a plan without copays.

I have stated before that I was surprised at comments by a Time rep when he said 40% of their sales were Right Start plans (including the HSA).

The Aetna rep said their HDHP sales were 4% of total sales. Another 5% were value plans.

Clearly the carrier has no idea how to effectively market plans that hold down costs.

Or maybe the agents they attract can only sell copay plans.

When 90% or so of your portfolio are copay plans you will eventually have trouble competing in the market.

Similarly, if you are an agent who sells mostly copay plans you are vulnerable to losing clients to another agent who knows how to sell the sizzle of the HSA (or other no copay plans).

 

[somarco]

Faxoflife -

Was Bruno giving the presentation? If so, I can understand your comment.

 

[Ahnuld]

The Aetna HDHP product uses an embedded aggregate deductible, that is priced closely to their copay product with a similar deductible (say $5,000 for example). Everyone else here uses an aggregate deductible.

If you compare an Aetna $5000 HDHP with their $5000 Value copay plan, the prices are within a few dollars of the other.

The copay plan gives you copays (obviously) but has $7000 OOP on a large claim vs. $5000 with the HDHP.

Thanks for pointing this out again re: Aetna. You've given us a well thought out refresher course on Aetna's folly.

 

[J.R.]

Most agents fail to take into account the OOP on a large claim and just look at the deductible then automatically assume the copay is a better value.

Great.....now they know. Thanks Bob.

I have stated before that I was surprised at comments by a Time rep when he said 40% of their sales were Right Start plans (including the HSA).

Confirmed might be a better choice as the path of least resisistance can be tempting.

The Aetna rep said their HDHP sales were 4% of total sales. Another 5% were value plans.

What about the other 91%

 

[somarco]

Uh . . . the other 91% were their regular copay plans (including the hospital only).

He didn't give a break out on those other than to say they sell very few $1000 ded plans.

One other question came up, and Bruno had no idea.

"If someone buys an HDHP, how do they know how much to pay when they go to the doc?"

If there was anyone in the room, other than me, that knew how to handle the situation, they weren't speaking.

Amazing . . .

 

[Crabcake Johnny]

I think in the consumer's eye HSAs are mis-priced. For a family of 4, age 40 the difference between GR's Copay Select with a $2,500 deductible and their HSA 100 with a $5,800 deductible is $100 flat.

To many, that doesn't justify the lack of copays. Worse yet is the Copay Select at $390 is well within their budget so the attitude is "$390 is very low so why bother with the HSA."

Also, the individual's liability increases; $4,500 OOP for the Copay Select, $5,800 - $1,400 more of individual liability for the HSA off-set by $1,200 in savings - so the individual is a loser on the HSA. Only comes out ahead if 2 family members incur an event in the same year.

All the tax benefits of having the account? I'd LOVE to see stats on how many HSA clients even fund their account with any significant amount of money.

Yes, family liability X 2....we get it.

By the way, I'm a huge HSA fan - wish they were properly priced.

 

[Bob_The_Insurance_Guy]

Faxoflife -

Was Bruno giving the presentation? If so, I can understand your comment.

Bruno not only works the Major Med side of Aetna, he also does Medicare Advantage. I have an associate who also sells MA's, and he's been approached by Bruno several times about their MA plans.

I think Bruno keeps his resume on Monster.

Coventry was going good for a while. Humana has become my number one lately. Noone beats their customer service, their product knowledge, and their easy online quoting. I was also able to break free from Benefit Mall, and do all Humana Lines (MA exception) direct.

Humana's prices are in Coventry's range, and I get better service. I was very excited about Coventry, when their individual plans came out, but have bumped them down to 3rd, behind Kaiser and Humana. Assurant's One Deductible is still my #1 seller, with and without HSA component.

Coventry only has certain people who know whats going on, Kaiser, Humana and Assurant have that seamless knowledge. Both the Time and John Alden side are good. Just did a webinar with the local JA rep and learned how to sell the product - stuff I didn't realize I could present.

That's who gets my business. Someone who constantly has me in mind, and someone who emboldens their staff with information, so that, no matter when I call, I get the answer I need.

BTW, the "we're going to drop you" letter I got from the Evil Empire last year must have just been a form letter. I'm still a rep, and they haven't dropped me yet.